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2nd mortgage mississauga

FIRST & SECOND MORTGAGES

What is a Mortgage?

A mortgage is a type of loan which has a real estate property as security.

What is a First and Second Mortgage?

The words First and Second Mortgages can be confusing. In reality, these do not mean a person’s experience with the mortgages, but the position which the mortgages hold on a particular property. It is therefore possible to have first and second mortgages when you have 2 or more properties.

An example

Let’s say that you already have a mortgaged property and want more funds in order to buy an investment property with down payment. As you see that it is too expensive to break the first mortgage and then refinance, you understand that the best choice is to get a second mortgage on the same property. This would be the Second Mortgage as it is registered just after the First Mortgage of the property.

This allows you to get the necessary funds to buy the second investment property. In this section, there is something to be understood. Understand that this is not considered to be a third mortgage. Mortgages are placed one after the other, or chronologically, on properties. Therefore, unless there are existing mortgages, the new mortgage becomes the property’s first mortgage.

Thus, according to this example you have 3 mortgages including first and second mortgage.

Our company has helped numerous individuals all over Canada receive their first and second mortgages for all their needs and requirements.

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